Day Traders Diary

5/8/23

The major averages closed mixed ahead of key inflation data and more earnings. The Dow Jones Industrial Average fell 55 points. The S&P 500 rose a point while the Nasdaq rose 21 points.

Traders are awaiting key data that will inform the Federal Reserve's forward path: April's CPI report is due Wednesday, followed by the producer price index on Thursday.

Separately, select bank shares ticked higher to begin the week. Shares of PacWest gained 3.6%. Late Friday evening, the bank announced that it would cut its dividend to just 1 cent per share from 25 cents per share in the prior quarter. Western Alliance shares ended the day up about 0.6%. Big banks Wells Fargo and JPMorgan Chase also rose.

Investors are debating whether the banking crisis has finally abated, according to Oanda senior market analyst Edward Moya.

Elsewhere, shares of Disney rose more than 2%. The company is set to report quarterly results on Wednesday.

Meanwhile, Berkshire Hathaway Class A shares rose 1%. On Saturday, Warren Buffett's conglomerate reported its first-quarter results. The conglomerate showed operating earnings increased 12% in the first quarter, while its cash hoard topped $130 billion. Buffet personally discussed topics including the latest banking crisis that rocked Wall Street, at Berkshire Hathaway's annual meeting in Omaha, Nebraska.

Stocks are coming off a volatile week that saw the Dow Jones Industrial Average and S&P 500 notch their worst weekly stretches since March. The losses came despite a late-week rally.